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Due to a factory upgrade, earnings and dividends in a manufacturing company are expected to grow at a rate of 15% for the next 4
Due to a factory upgrade, earnings and dividends in a manufacturing company are expected to grow at a rate of 15% for the next 4 years. After this period the firm is expected to resume growth at the industry average of 6% thereafter. The firm recently paid a dividend of $1 and the required return is 20%. What is the most you should pay for the company's stock?
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